Urea subsidy extended till 2020

Urea subsidy extended till 2020

Context

The Cabinet has approved the proposal by the Department of Fertilizers to continue the ongoing Urea Subsidy Scheme from 2017 to 2020

Benefit of the move

The continuation of the urea subsidy scheme will ensure that adequate quantity of urea is made available to the farmers at statutory controlled price

Urea Subsidy Scheme

Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers w.e.f 1st April, 2017 and is wholly financed by the Government of India through Budgetary Support

• Imported Urea subsidy: Urea subsidy also includes Imported Urea subsidy which is directed towards import to bridge the gap between assessed demand and indigenous production of urea in the country
• Frieght subsidy:It also includes freight subsidy for movement of urea across the country
• For sustained agricultural growth and to promote balanced nutrient application, urea is made available to farmers at statutorily controlled price, which at present is Rs. 5360/- per MT (exclusive of the Central/State Tax & other charges towards neem coating). The difference between the delivered cost of fertilizers at farm gate and MRP payable by the farmer is given as subsidy to the fertilizer manufacturer/importer by the Government of India

Backdrop

Chemical Fertilizers have played an important role in making the country self-reliant in food grain production and provide a very vital input for the growth of Indian agriculture